Trade Setup: Bull Run Intensifies, Nifty Surges 300 Points In 3 Days Amid Strong Global Cues

Dalal Street witnessed a spirited surge in the Nifty, with bulls and bears avoiding any fierce confrontation. The Nifty index has gained 300 points over the past three sessions, recovering from the losses it faced during a notable drop the previous Wednesday.

As of Tuesday's close, the Nifty is now within striking distance, just 150 points away from its previous record high of 21,593, reached on December 20. The final weekly and monthly options expiry for the Nifty Bank index is anticipated on Wednesday, adding an extra layer of intrigue to the market dynamics.

Tuesday's market activities unveiled minimal institutional participation, with foreign investors remaining net sellers, while domestic institutions made modest purchases. The Nifty Bank, which lagged during Friday's session, closely followed the Nifty's trajectory, trading within a 400-point range. However, unlike the previous eight sessions, the index did not attempt a record high, concluding approximately 100 points lower than the day's peak at 47,838.

The Nifty Bank, despite its underperformance on Friday, has demonstrated resilience throughout the December series, marking an impressive gain of around 2,200 points or 7%, making it one of the most robust series in a year that has otherwise seen underwhelming performance.

Futures and Options (F&O) cues reveal interesting patterns in the market sentiment. The Nifty 50's December futures witnessed a substantial 4.2% increase in Open Interest on Tuesday, with current rollovers standing at 52%. They are trading at a premium of 30.95 points, down from 52.95 points earlier. Meanwhile, the Nifty Bank's December futures added 2.5% in Open Interest, with a rollover rate of 51% as it heads into its expiry session. The Nifty 50's Put-Call Ratio stands at 1.23, up from 1.18 earlier.

In the F&O space, RBL Bank enters the ban list from Wednesday's session, alongside NALCO, Balrampur Chini, Delta Corp, and Hindustan Copper. Conversely, Ashok Leyland, India Cements, and SAIL exit the F&O ban.

On the Call side, Nifty 50 strikes between 21,450 and 21,600 witnessed increased Open Interest, with the former experiencing the maximum addition. On the Put side, Nifty 50 strikes between 21,300 and 21,500 showed added Open Interest for Thursday's expiry.

Stocks to Watch Ahead of Wednesday's Session:
Adani Ports board meeting on January 3, 2024, to discuss fundraising strategies. Adani Energy Solutions is set to acquire a 100% stake in Halvad Transmission, investing nearly Rs 3,000 crore in a renewable energy transmission project at Khavda Renewable Energy Park for the next 35 years.

Vishnu Prakash R Punglia receives a Letter of Award for projects worth Rs 899 crore from the Uttarakhand Government. Kansai Nerolac to sign a pact with Aethon Developers to sell its Lower Parel land parcel for Rs 726 crore. Aditya Birla Capital invests Rs 850 crore in Aditya Birla Finance on a rights basis and Rs 50 crore in Aditya Birla Capital Digital.

SEAMEC signs MoU with HAL Offshore for charter hire of offshore support sea vessel "Sea Pearl" for ONGC Contract, aggregating to $9.59 million. LIC set to establish a branch at the International Financial Services Centre in GIFT City. Axis Bank files an insolvency petition against Zee Learn before the NCLT.

UGRO Capital to consider fundraising through the issuance of NCDs via a public issue on December 29. Power Grid: Acquires Vataman Transmission Ltd for Rs 18.19 crore and commissions the 500 MW Tuticorin Wind Energy Zone Project. SJVN secures a 100 MW Solar Power order from Gujarat Urja Vikas Nigam, costing Rs 550 crore.

Across the globe, markets in the Asia-Pacific region rebounded on Wednesday, with Australian stocks reaching their highest level in two years after the Christmas break. The Nikkei 225 is up 1%, marking a 27% gain in 2023 and securing its position as the top-performing index in Asia. South Korea's Kospi is up 0.3%, while the Kosdaq is up 1.3%.

Wall Street started the final week of 2023 on a positive note, with the S&P 500 ending higher by 0.4%, the Nasdaq gaining 0.5%, and the Nasdaq 100 notching a record closing high.

Adding to the optimism, GIFT Nifty is trading with gains of more than 60 points against Nifty Futures' Tuesday close, suggesting a gap-up start for the Indian market on Wednesday.

As the year draws to a close, Dalal Street seems to be gearing up for a finish with noteworthy gains, with investors eagerly anticipating the market trends in the coming sessions.